>>> What to look at today - 9th of December 2014

US MArket closed lower, all mkts closed lower except China on hopes of more stimulus from PBoC, cyclical sectors were also responsible for the weakness in the U.S. with energy (-3.9%) taking it on the chin amid another decline in crude oil (-5,5% to $63,10/bbl), the technology sector (-1.2%) held up relatively well through the morning, but slipped into the afternoon amid broad weakness, financials tried to resist the broad pressure (+0,4%), healthcare received an early boost from biotechnology after Merck (MRK 61.88, +0.39) agreed to acquire Cubist Pharmaceuticals (CBST 100.60, +26.24) for $102/share, which represents a 35.0% premium to CBST's average stock price over the past five days. Cubist soared 35.3% while the iShares Nasdaq Biotechnology ETF (IBB 313.79, +4.98) jumped 1.6% to a new record high, volumes were in line with average @794mil shares...VIX @ 14,21 +20,22%...US After Hours IDT +4.1%, DMND +2.4%, PLAB -6.3%, HRB -6.0%, PBY -4.9% following earnings/guidance...Regional indices in Asia are tracking more cautious sentiment in US hours with the exception of Shanghai Composite, where the bullish momentum remains solidly intact at the opening but big reversal at the end of the day more than 7.5% intraday move...Nikkei -0.68% ..Hang Seng -2.14%...Shanghai -5.08%

Eur$1.2333 S&P-0.30% Eurostoixx -0.98% Dax -0.86% SMI -0.73%

Macro
- Dijsselbloem Says Greece to Request Extension Tomorrow
- ECB to Limit Emergency Liquidity Assistance Period: Handelsblatt

Keep an eye on :
- ABI BB : AB InBev Board Member Winkelman Sells $3.31m of Brewer’s Stock
- ATC NA : Oi Board Approves Sale of Portugal Assets to Drahi’s Altice
- AZA IM : Lufthansa calls for Alitalia takeover by Etihad to be classified as state aid
- AZN LN : GSK may be tempted back to bid for ARIAD by rumours of AstraZeneca interest
- BLT LN : BHP Hits Fresh 5-Year Low on Oil Price Drop, Iron Ore Weakness
- BMW GY : BMW Supervisory Board to Discuss Top-Level Appts Tmrw: Reuters
- BMW GY : BMW in Talks With China Dealers on 6b Yuan Rebate Request: News
- DBK GY : Deutsche Bank Sued by U.S. for Alleged Tax Scheme (Earlier)
- DEC FP : JC Decaux considering making an offer for Clear Channel Outdoor's assets in Europe
- DTE GY : TMUS Offering 17.39M shares of its Mandatory Convertible Preferred Stock, Series A, with a liquidation preference of $50 per share.  
- ENI IM : Eni Begins Crude Production at Angola Offshore Field
- EMG LN : Man Group Buys Contracts to Manage Fund Portfolio w/ AUM $1.2b
- ENX FP : ICE Sells 4.21m Euronext Shrs at EU23, Terms Show
- GSK LN : GSK may be tempted back to bid for ARIAD by rumours of AstraZeneca interest
- OR FP : L’Oreal CEO Agon Sold EU2.2m in Shrs Dec. 1
- PNDORA DC : Axcel, Hakon, Enevoldsen Selling 5.9m Pandora Shares
- REP SM : Talisman Says It Has Been Approached by Repsol, Others
- RNO FP : Renault Plans Emerging-Mkt Vehicles Starting at EU3,500: Echos
- FP FP : Total Sells Remaining Stake in GTT to Temasek

>>> Brokers Upgrades & Downgrades - QWERUS;CAREM;ACEM;FJEM;PCEM;XHEM;JCEM;RAMEM;

>>> Up
*EUROFINS SCIENTIFIC RAISED TO NEUTRAL VS UNDERWEIGHT AT HSBC
*G4S RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*HERMES RAISED TO BUY VS REDUCE AT ODDO
*UNIPOL RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS

>>> Down
*AGGREKO CUT TO UNDERPERFORM VS BUY AT JEFFERIES
*ALLIANZ CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*BAGFAS CUT TO NEUTRAL VS OVERWEIGHT AT HSBC
*BAYER CUT TO NEUTRAL VS BUY AT BOFAML
*EUROCASH CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*GLAXOSMITHKLINE CUT TO UNDERPERFORM VS NEUTRAL AT BOFAML
*HANNOVER RE CUT TO UNDERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*JERONIMO MARTINS CUT TO NEUTRAL VS BUY AT UBS
*KUEHNE & NAGEL CUT TO SELL VS NEUTRAL AT GOLDMAN SACHS
*MICHAEL PAGE CUT TO UNDERPERFORM VS OUTPERFORM AT CREDIT SUISSE
*MUNICH RE CUT TO UNDERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*PRADA CUT TO NEUTRAL VS BUY AT UBS; PT CUT 26% TO HK$48
*SHIRE CUT TO NEUTRAL VS BUY AT BOFAML

>>> PT Changes


>>> Initiation
*ABERDEEN ASSET RATED NEW BUY AT CANTOR FITZGERALD, PT 520P
*ASHCOURT ROWAN RATED NEW BUY AT CANTOR FITZGERALD
*ASHMORE RATED NEW BUY AT CANTOR FITZGERALD, PT 375P
*CAP GEMINI RATED NEW SELL AT DEUTSCHE BANK
*ENAGAS RATED NEW HOLD AT BERENBERG, PT EU27
*HENDERSON RATED NEW HOLD AT CANTOR FITZGERALD, PT 230P
*JUPITER RATED NEW HOLD AT CANTOR FITZGERALD, PT 380P
*RED ELECTRICA RATED NEW BUY AT BERENBERG, PT EU83.90
*SCHRODERS RATED NEW BUY AT CANTOR FITZGERALD, PT 3,000P


>>> Call
>> Stock
*ACTELION ADDED TO EUROPE 1 LIST AT BOFAML
*LAFARGE EXITS JPMORGAN EUROPEAN ANALYST FOCUS LIST

>>> Oi board approves sale of PT Portugal to Altice for EUR 7.4bn in cash and de

Oi board approves sale of PT Portugal to Altice for EUR 7.4bn in cash and debt

Oi S.A. (Bovespa: OIBR3, OIBR4; NYSE: OIBR and OIBR.C), in accordance with article 157, paragraph 4 of Law No. 6,404/76 (the “Brazilian Corporation Law”) and the Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários - CVM) Instruction No. 358/02, continuing with the Material Facts dated 3 November 2014 and 30 November 2014, informs its shareholders and the market in general that, on this date, the Board of Directors of Oi finalized the formalities to approve the general terms and conditions for the sale of all of the shares of PT Portugal SPGS S.A. (“PT Portugal”) to Altice Portugal S.A. (“Altice PT”), a wholly-owned subsidiary of Altice S.A. (and together with Altice PT, “Altice”).

The sale substantially involves PT Portugal’s operations in Portugal and Hungary. The effectiveness of the purchase and sale contract will depend on the approval by the shareholders of Portugal Telecom SGPS, S.A. (“PT SGPS”), which will be called in due course.

With this approval, Oi will transfer to Altice all of the shares issued by PT Portugal for an enterprise value of EUR 7.4bn, adjusting for cash and debt and including an earn-out of EUR 500m related to PT Portugal’s generation of future revenue. The price to be paid by Altice will suffer adjustments usually adopted in similar transactions, in accordance with PT Portugal’s cash holdings on the closing of this transaction.

Prior to the consummation of the sale and as a condition precedent to its closing, certain corporate reorganizations will be required to take place in order to delineate the operations to be transferred as well as to separate PT Portugal’s investments which will not be included in the sale, including the investments in Africatel GmbH & Co. KG and Timor Telecom S.A. and the investments held by PT Portugal in Rio Forte Investments S.A.
(which are subject of the share exchange agreement with PT SGPS under which this investment will be exchanged for shares issued by Oi, which is still subject to approval by the CVM), as well as all or part of PT Portugal’s indebtedness.


Source Company Press Release

>>> GSK may be tempted back to bid for ARIAD by rumours of AstraZeneca interest

GSK may be tempted back to bid for ARIAD by rumours of AstraZeneca interest

GlaxoSmithKline (GSK) is rumoured to be a potential bidder for the Nasdaq-listed oncology group ARIAD Pharmaceuticals, The Independent reported.

The market report noted speculation that UK-listed GSK might be prompted to look again at ARIAD following recent chatter that rival UK-based pharma group AstraZeneca is in the frame as a prospective ARIAD acquirer.

GSK was rumoured to be eyeing Cambridge, Massachusetts-based ARIAD early this year, the report said.

Independent

>>> Lufthansa calls for Alitalia takeover by Etihad to be classified as state ai

Lufthansa calls for Alitalia takeover by Etihad to be classified as state aid

Lufthansa, the German airline, is to ask the European Union to rule that a takeover of Italian airline Alitalia by UAE-based airline Etihad constitutes state aid, Italian language daily Il Sole 24 Ore reported. The report cited Carsten Spohr, the CEO of Lufthansa who added that Etihad should restructure Alitalia and ensure that no dumping takes place in tariffs and capacity.
Il Sole 24 Ore

>>> US After Hours IDT +4.1%, DMND +2.4%, PLAB -6.3%, HRB -6.

After Hours Summary: IDT +4.1%, DMND +2.4%, PLAB -6.3%, HRB -6.0%, PBY -4.9% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: IDT +4.1%, DMND +2.4%

Companies trading higher in after hours in reaction to news: BLUE +20.6% (announced data demonstrating first four patients with beta-thalassemia major treated with LentiGlobin are transfusion-free), PDCE +3.0% (announced 2015 capital budget of $557 mln and production guidance of 13.8-14.5 mln Boe or ~50% yoy growth), HSP +2.3% (seeing reports that co received a favorable ruling in patent case against Cubist/Merck (CBST, MRK)), SD +1.4% (declared semi-annual preferred stock dividend fo $4.25 per share)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: PLAB -6.3%, HRB -6.0%, PBY -4.9%, GTIM -3.1%, MCC -2.8%, ABM -0.6%

Companies trading lower in after hours in reaction to news: MANU -9.8% (announced the offering of 3 mln shares of its Class A Ordinary Shares by a selling shareholder), TMUS -3.2% (announced proposed public offering of 17,391,305 shares of mandatory convertible preferred stock, with a liquidation preference of $50 per share), SAVE -2.7% (provided Q4 and 2015 guidance - co noticed some 'dilutive pricing arising from the change in capacity related to the expiration of the Wright Amendment'), ANV -2.2% (announced public offering of common stock and warrants, size not disclosed), CBST -2.1% (seeing reports that a judge has ruled four of co's patents invalid, allowing Hospira (HSP) to launch a generic version of Cubicin as soon as 2016; MRK also lower), VZ -1.1% (co expects that Q4 impacts of its promotional offers, together with the strong customer volumes this quarter, will put short-term pressure on its wireless segment EBITDA and EBITDA service margin), LHO -1.1% (announced sale of 7.6 mln common shares) 

>>> Asian Update

Asian Market Update: AUD falls to fresh multi-year lows as business confidence slumps


***Economic Data***
- (AU) AUSTRALIA NOV NAB BUSINESS CONFIDENCE: 1 V 5 PRIOR (16-month low); NAB BUSINESS CONDITIONS: 5 V 13 PRIOR
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 110.4 v 113.9 prior (4-month low)
- (JP) JAPAN NOV M2 MONEY SUPPLY M2 Y/Y: 3.6% V 3.2%E (8-month high); M3 Y/Y: 2.9% V 2.6%E
- (NZ) NEW ZEALAND NOV TOTAL CARD SPENDING M/M: -0.3% V +1.5% PRIOR; RETAIL SPENDING M/M: -0.1% (first decline in 4 months) V +0.2%E
- (NZ) New Zealand Nov ANZ Truckometer Heavy m/m: -2.9% v 0.8% prior
- (UK) UK NOV BRC SALES LFL Y/Y: 0.9% V 0.6%E (3-month high); Total sales +2.2%

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -0.3%, S&P/ASX -1.4%, Kospi -0.4%, Shanghai Composite +1.2%, Hang Seng -0.8%, Dec S&P500 -0.2% at 2,056

***Commodities/Fixed Income***
- Feb gold +0.5% at $1,200, Jan crude oil -1.0% at $62.40/brl, Mar copper -0.3% at $2.88/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 1.8 tonnes to 719.1 tonnes
- (AU) Australia MoF (AOFM) sells A$200M in 2015 treasury-indexed bonds; Average yield of 0.5528%, bid-to-cover: 5.05x
- JGB: (JP) Japan MoF sells ¥643B in 1.5% (1.7% prior) 30-yr notes; Avg yield: 1.456%v 1.633% prior; Bid to cover: 3.12x v 2.59x prior
- (CN) PBoC won't conduct open market operations (OMO) in today's session (4th consecutive halt)
- USD/CNY: (CN) PBoC sets yuan mid point 6.1231 v 6.1282 prior setting (strongest Yuan setting since Mar 6th)

***Market Focal Points/Key Themes/FX***
- Regional indices in Asia are tracking more cautious sentiment in US hours with the exception of Shanghai Composite, where the bullish momentum remains solidly intact. Traders have shrugged reports that China would halt accepting new corporate and local govt bond buybacks with less than "AA" rating as well as speculation the CSRC could speed up IPO approval amid the powerful equity market rally, with anticipation of more easing sustaining interest. China Real Estate Index System (CREIS) has also warned the property market may not sustain a recovery despite the recent interest rate cut, while analysts with BoCom noted the fall in imports from the trade data overnight shows the economy is under pressure.

- AUD/USD fell another 80pips to $0.8220 - the lowest level in over 4 years - in the wake of more disappointing data from Australia. November business confidence from NAB fell to a 16-month low amid "softer commodities outlook and prospect of more severe deterioration in labour market". NAB also joined Goldman, DB, and Westpac in expectation of 2 RBA rate cuts in 2015, with a 30% possibility of a 3rd cut. Furthermore, NAB cuts its FY14/15 GDP target to 2.5% from 2.9%. ANZ's weekly consumer confidence index also fell to a 4-month low, and ANZ chief economist noted that a rate cut from the RBA could help build confidence.

- Yen pairs are under pressure across the board - USD/JPY is down over 90pips around 120.10, AUD/JPY down 130pips below 99.00, and NZD/JPY down 70pips below 91.70 - as traders questioned the efficacy of Abenomics through broad expansion of money supply. Reversal in risk-on trades also deterred fresh selling of the funding JPY currency. Japan cabinet officials remain in damage control after the disappointing Q3 final GDP report overnight - Econ Min Amari said CapEx is still resilient despite another contraction, while Fin Min Aso reiterated he does not believe Japan is in recession.

***Equities***
US markets:
- BLUE: Announces Data Demonstrating First Four Patients with -Thalassemia Major Treated with LentiGlobinare Transfusion-Free; +43.2% afterhours
- VZ: Expects Q4 pressure in wireless segment EBITDA from promotional activity; Sees Strong Wireless Customer Growth and 4G Device Adoption; -0.9% afterhours
- CBST: Hospira permitted to launch generic version of Cubist's Cubicin drug in 2016 - financial press citing US Court findings; -1.2% afterhours
- PBY: Reports Q3 -$0.03 (includes items) v $0.11e, R$517.6M v $514Me; -2.2% afterhours
- HRB: Reports Q2 -$0.45 v -$0.42e, R$135M v $145Me; -5.6% afterhours

Notable movers by sector:
- Materials: Itochu Corp 8001.JP -2.6% (provides guidance)
- Energy: Santos Ltd STO.AU -7.0% (downgraded by S&P); Sundance Energy Australia SEA.AU -12.5%, Oil Search OSH.AU -3.7% (WTI crude lower today); Xinyi Solar 968.HK +2.3% (FY14 guidance)
- Industrials: Henan Pinggao Electric 600312.CN +5.9% (awarded major contract); Xinyi Glass Holding 868.HK -3.3% (FY14 guidance); Transpacific Industries Group TPI.AU -3.3% (update on financial impact from heavy vehicle incident)
- Technology: Hangzhou Hikvision Digital Technology 002415.CN +4.1% (to issue shares in Hong Kong)
- Utilities: Sichuan Chuantou Energy 600674.CN +4.1%, SDIC Power Holdings 600886.CN +6.2% (Sichuan Province hydropower installed capacity target)

NYT Madison Avenue see rough time ahead, tempered by growth

AN old Viennese saying to the effect that "the situation is hopeless but not serious" seems to sum up what several Madison Avenue thought leaders believe lies in store for the industry next year.
The senior executives, in presentations on Monday at an annual media conference, predicted that the rough times the advertising business has endured for the last several years would continue into 2015. Still, there will be steady growth in worldwide advertising spending of 4.8 to 5 percent compared with this year, according to their forecasts, as a result of factors that include gains in digital ad sales and improving economic conditions in markets like India and the United States.
The better outcome the executives anticipate for 2015 compared with 2014 may not warrant dancing a Viennese waltz, but would be respectable, they suggested, in light of the many issues that worry them and marketer clients.
"If anybody in this room thinks life is easy," said Martin Sorrell, chief executive of WPP, the world's largest agency holding group in revenue, "think again." He cited a news story late last week in London, where WPP is based, reporting that a giant marketer, Premier Foods, "was asking its suppliers, including advertising agencies, to pay a sort of toll or fee to earn the right" to continue doing business with the company in what is called a pay-and-stay arrangement.
Although Premier executives subsequently "withdrew" those requests, Mr. Sorrell said, it underscored "the tough economic position" of advertisers and how "the pressure to reduce costs" is now a constant.
"The biggest challenge we face as an industry is convincing clients to focus on the top line rather than reducing costs," he added, and to realize that ad spending is "an investment, not a cost."
As for agencies, Mr. Sorrell said, "the pressure is intensifying" in areas like payment terms, where clients want more leeway. Yet in a tough, troubled climate, it will be "the same again" for ad spending next year as it was this year, he added: trudging ahead from the previous year despite "gray swans" -- Mr. Sorrell's term for "known unknowns" that plays off "black swans," or unforeseen crises.
Mr. Sorrell spoke during the first day of the 42nd annual UBS Global Media and Communications Conference, which continues in Midtown Manhattan through Wednesday. His wide-ranging remarks -- which included predictions that no party may be able to form a government after the British election next year and that Hillary Rodham Clinton would be elected president in 2016 -- followed the morning keynote, a panel of three media agency leaders offering ad forecasts.
Conditions in the ad and media industry are "unrelentingly tough," Steve King, chief executive of the ZenithOptimedia division of the Publicis Groupe said in an interview, "because everyone's trying to squeeze you" and "the pain for not getting it right is greater" than it used to be.
Despite its being "a hard slog," he added, the business "is in reasonably good shape" because of growth in digital ad spending, "almost entirely coming from newspapers and magazines"; robust gains in mobile ad spending; and improvements in "steady-growth" markets like Australia and the United States as well as "fast-growth" markets like China, India and Latin America.
A second panelist, Vincent Letang, executive vice president and director for global forecasting at the Magna Global unit of the Interpublic Group of Companies, said he expected the outcome for 2015 to be "not fantastic, but a decent performance." After that, he added, worldwide ad growth "will fluctuate between 5 and 6 percent a year."
A third panelist, Adam Smith, futures director of GroupM, owned by WPP, wondered how much ad spending may pick up if oil prices, which have sharply declined recently, remain low or head lower. That would be "quite a strong positive," he said, because marketers could run more ads to woo consumers who have more to spend as they spend less for gasoline.
Mr. Smith's forecast for 4.9 percent worldwide ad spending growth in 2015 compared with this year is predicated, he said, on continued gains for digital ads as some ad markets that previously grew rapidly slow down or, in the case of Russia, turn negative.
As for television ad spending, Mr. Smith cast doubt on some predictions that it would decline significantly soon or that digital ad spending would increase at the expense of television.
"Print is the organ donor for digital," he said, adding: "Print was low-hanging fruit for the Internet. TV dollars are much further up in the canopy."
Another speaker, David F. Poltrack, chief research officer of a television giant, the CBS Corporation, acknowledged difficulties for the medium like "resistance in the upfront market" from advertisers that balked at buying commercial time before the start of the 2014-15 season and "a mercurial scatter market" -- buying commercial time during the season -- "that fluctuates from day to day."
Viewers are certainly watching more streaming video, Mr. Poltrack said, but decisions to shift ad dollars there from television may be premature until more reliable measurement of viewing habits is available.
Digital media is not necessarily antithetical to television, he added, noting that "one million people are watching 'The Big Bang Theory' on cbs.com" rather than on the CBS broadcast network.
Mr. Smith of GroupM said much the same thing, telling the audience, "If we are going to be predicting doom for TV, let's look at the numbers first."